Choosing a stock to trade is the difficult thing in Technical analysis, than Initiating position in it. Question hit in mind is, what is the universe of stocks you need to track. How to select good stocks in your universe. Each step need to be defined.
Or else, you will just hoping here & there in stocks , without getting desired results. I when started Technical analysis in 2003-04, as a novice, Just focussed on stocks trading above 200 SMA. Those are times i got good results. IN the years later, i deviated from that, and used almost many models and strategies. Now in the end, few years back, understood what i learned as a novice was easy strategy, but we hardly believe in easier things.
I now uses not exactly 200 SMA for selection, but surely my majority of stocks i have are in uptrend, offcourse its using MA only. And its a combination of MA's too. Very small amount i invest/trade based on stocks in downtrend. As for eyes it looks cheaper, and we are biased to found support here & there, but very difficult to pin-point. So thats why such adventures need to be restricted for lesser capital allocation.
Ride on trends, and yes never confuse yourself with someone else's analysis. He may be riding it for day or two, and you may be looking at the same chart for weeks ride. Both have different expectations and both can be right.
